UBS Trims Delta Target to $99 as Airlines Navigate Higher Fuel

UBS maintained its Buy rating on Delta Air Lines Thursday while cutting its price target to $99 from $112, citing the cost environment facing carriers as crude prices climb. Delta closed the session at $78.13 on the NYSE, down 0.8% on the day.

The revision comes as jet fuel costs move with a crude complex that has pushed higher on Middle East supply disruptions, compressing the margin advantage that premium-heavy carriers built through the first half of the year. Separately, FAA Administrator Bryan Bedford met with airline chief executives, including Delta's, on plans to roll out the SMART program this month.

On the commercial side, Delta and DraftKings are launching SkyPicks, a free-to-play sports knowledge contest available onboard. The tie-up extends Delta's in-flight entertainment offering and gives DraftKings a captive audience channel, though neither company has disclosed financial terms.